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DECREE

On sanctioning of administrative violations in the domain of securities and securities market

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 29, 2006 Law on Securities;

Pursuant to July 2, 2002 Ordinance on Handling of Administrative Violations;

At the proposal of the Finance Minister;

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope

1. This Decree provides for the sanctioning of administrative violations in the domain of securities and securities market, sanctioning forms, remedies for consequences, and sanctioning levels, competence and procedures.

2. Administrative violations in the domain of securities and securities market specified in this Decree include:

a/ Violation of regulations on public offering of securities;

b/ Violation of regulations on public companies;

c/ Violation of regulations on securities listing;

d/ Violation of regulations on organization of a securities trading market;

e/ Violation of regulations on securities business and securities practice certificates;

f/ Violation of regulations on securities trading;

g/ Violation of regulations on securities registration, depository, clearing and payment, and on supervisory banks;

h/ Violation of regulations on information disclosure;

i/ Violation of regulations on reporting;

j/ Violation of regulations on obstruction of inspection.

Article 2.- Subjects of application

Domestic and foreign individuals, agencies and organizations (hereinafter collectively referred to as individuals and organizations) that commit violations of the law on securities and securities market which are not serious enough for penal liability examination shall be administratively sanctioned under this Decree, unless otherwise provided for by a treaty to which the Socialist Republic of Vietnam is a contracting party.

Article 3.- Principles for sanctioning administrative violations

1. Principles for sanctioning administrative violations in the domain of securities and securities market comply with the provisions of Article 3 of the Ordinance on Handling of Administrative Violations.

2. After abiding by sanctioning decisions, organizations sanctioned for administrative violations they have committed shall identify individuals at fault in these administrative violations in order to determine their legal liability and financial obligations according to law.

Article 4.- Statute of limitations for sanctioning administrative violations

1. The statute of limitations for sanctioning an administrative violation in the domain of securities and securities market is two years after that violation is committed. Upon the expiration of this time limit, that violation shall not be sanctioned but are still subject to remedies for consequences specified in Clause 3, Article 7 of this Decree.

2. For an individual who had committed an act of violation of the law on securities and securities market and against whom a legal action was instituted or who was prosecuted or against whom a decision on bringing the case for trial according to criminal procedures was issued, but later a decision on termination of investigation or of the case is issued, if his/her act constitutes an administrative violation, he/she shall be administratively sanctioned under this Decree. The issuer of the termination decision shall also send that decision to the person competent to sanction the administrative violation. In this case, the statute of limitations for sanctioning the administrative violation is three months after the person competent to sanction the administrative violation receives the termination decision and the violation case dossier.

3. Within the time limit specified in Clause 1 or 2 of this Article, if violating individuals or organizations commit new acts of violation related to securities and securities market or intentionally shirk or obstruct the sanctioning, the statute of limitations specified in Clause 1 or 2 of this Article will not apply. The statute of limitations for sanctioning administrative violations shall be counted from the date the new act of violation is committed or the date the act of shirking or obstructing the sanctioning is terminated.

Article 5.- Duration upon expiration of which a person is regarded as having never been sanctioned for administrative violation

After one year since an individual or organization sanctioned for administrative violation fully complies with the sanctioning decision or since the expiration of the statute of limitations for execution of a sanctioning decision if that individual or organization does not relapse into violation, he/she/it will be regarded as having never been sanctioned for administrative violation.

Article 6.- Extenuating circumstances, aggravating circumstances

When sanctioning an administrative violation in the domain of securities and securities market, only the following circumstances are considered extenuating or aggravating:

1. Extenuating circumstances:

a/ The violator has prevented or mitigated damage caused by the act of violation or voluntarily applied remedies for consequences or paid damages;

b/ The violator has voluntarily reported his/her violation or admitted his/her fault;

c/ The violator commits the violation under coercion or due to his/her material or spiritual dependence;

d/ The violator commits the violation due to his/her ignorance;

e/ The violator commits the violation due to another person's violation.

2. Aggravating circumstances:

a/ The violator commits the violation in an organized manner;

b/ The violator repeatedly commits the violation or relapses into violation in the same domain;

c/ The violator forces his/her material or spiritual dependent to commit the violation;

d/ The violator abuses his/her position or powers to commit the violation;

e/ The violator commits the violation while executing a decision on sanctioning of administrative violation;

f/ The violator continues the act of administrative violation after being requested by a competent person to terminate such act;

g/ The violator flees away or covers up his/her act of violation after committing that act.

Article 7.- Sanctioning forms and remedies for consequences

1. For each act of administrative violation in the domain of securities and securities market, violating individuals and organizations shall be subject to either of the following two principal sanctioning forms:

a/ Caution;

b/ Fine.

2. Depending on the nature and severity of their violations, violating individuals or organizations can also be subject to one or several additional sanctioning forms as follows:

a/ Confiscation of all amounts earned from the commission of acts of violation and securities used for commission of administrative violations;

b/ Suspension for a specified period of time or cancellation of public offering of securities, if errors or violations cannot be remedied within forty five days;

c/ Deprivation for a specified or unspecified period of time of certificates of public offering of securities; establishment and operation licenses of securities companies, securities investment fund management companies or securities investment companies; certificates of registration of securities depository operation; or securities practice certificates. In the duration of deprivation of certificates, licenses or practice certificates, individuals or organizations may not conduct professional operations stated in those certificates, licenses or practice certificates.

3. In addition to the sanctioning forms specified in Clauses 1 and 2 of this Article, violating individuals and organizations may, depending on the nature and severity of their violations, be subject to one or several of the following remedies:

a/ Forced compliance with legal provisions on acts of administrative violation;

b/ Forced cancellation or correction of false or untruthful information;

c/ Forced recovery of securities already offered by issuing organizations, refund of securities deposit or purchase amounts to investors within thirty days after those issuing organizations' right to use certificates of public offering of securities is deprived of.

Article 8.- Application of legal provisions on sanctioning of administrative violations in related domains

For acts of administrative violation related to securities and securities market in other domains which, under current legal provisions, are subject to specific sanctioning forms and levels, they shall be sanctioned in accordance with those provisions.

Chapter II

ADMINISTRATIVE VIOLATIONS, SANCTIONING FORMS AND LEVELS

Section 1. VIOLATIONS OF REGULATIONS ON PUBLIC OFFERING OF SECURITIES

Article 9.- Sanctions against acts of violation of regulations on public offering of securities

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on issuing organizations, directors or general directors, chief accountants and affiliated persons of issuing organizations, issuance underwriting organizations, issuance consultancy organizations that compile dossiers for registration of public offering of securities containing untruthful or misleading information or containing insufficient information as required by law, thus affecting decisions of investors.

2. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on issuing organizations, directors or general directors, chief accountants and affiliated persons of issuing organizations, issuance underwriting organizations, issuance consultancy organizations that commit one of the following acts of violation:

a/ Intentionally disclosing untruthful information or hiding the truth;

b/ Using information outside prospectuses to conduct a market survey before being permitted to conduct public offering of securities;

c/ Distributing securities at variance with the securities type, issuance duration and minimum volume already registered according to regulations;

d/ Making issuance announcements on the mass media with contents other than required after the expiration of a set time limit;

e/ An issuance underwriting organization underwrites an amount of securities of a total value exceeding the level set by law.

3. A fine of between one percent (1%) and five percent (5%) of total value of the illegally mobilized money amount shall be imposed on issuing organizations, directors or general directors, chief accountants and affiliated persons of issuing organizations, issuance underwriting organizations, issuance consultancy organizations, accredited audit organizations, persons signing audit reports and organizations or individuals that certify dossiers for registration of public offering of securities containing forgeries, thus causing damage to investors.

4. A fine of between one and five times an illegally earned amount shall be imposed on issuing organizations that conduct public offering of securities without certificates of public offering of securities.

5. Additional sanctioning forms:

a/ Suspension of public offering of securities for forty five days, for the violations specified in Clauses 2 and 3 of this Article;

b/ Revocation of certificates of public offering of securities in case violations are not remedied upon the expiration of the suspension duration specified at Point a of this Clause;

c/ Forced cancellation of the offering, for the violation specified in Clause 4 of this Article;

d/ Suspension of the issuance underwriting operation for forty five days, for the violation specified at Point e, Clause 2 of this Article;

e/ Confiscation of all amounts illegally earned by individuals or organizations from their acts of violation specified in Clauses 3 and 4 of this Article.

6. Application of remedies for consequences:

a/ If investors request cancellation of their subscriptions, within thirty days after the public offering of securities is suspended under the provisions of Point a, Clause 5 of this Article, the organization that conducts the offering shall recover securities it has offered, refund securities deposit or amounts already paid for those securities plus demand deposit interests to investors;

b/ Organizations that conduct public offerings of securities shall recover securities they have issued, and refund securities deposit or amounts already paid for those securities plus demand deposit interests to investors within thirty days after their certificates of public offering of securities are revoked or they are compelled to cancel the offering under the provisions of Points b and c, Clause 5 of this Article.

Section 2. VIOLATIONS OF REGULATIONS ON PUBLIC COMPANIES

Article 10.- Sanctions against acts of violation of regulations on public companies

1. A caution shall be imposed on public companies that commit first-time violations involving extenuating circumstances specified in Clause 1, Article 6 of this Decree, of regulations on submission of registration dossiers to the State Securities Commission within ninety days after they acquire the public company status under the provisions of Point c, Clause 1, Article 25 of the Securities Law.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on public companies that commit one of the following acts of violation:

a/ Failing to submit registration dossiers to the State Securities Commission within ninety days after becoming public companies under the provisions of Point c, Clause 1, Article 25 of the Securities Law;

b/ Inserting untruthful information in public company dossiers for registration with the State Securities Commission, or failing to insert in these dossiers sufficient necessary information specified in Clause 1, Article 26 of the Securities Law;

c/ Failing to register or put securities in concentrated depository at the Securities Depositary Center under the provisions of Articles 52 and 53 of the Securities Law.

d/ Failing to comply with the provisions of the Enterprise Law on corporate governance under the provisions of Clause 1, Article 28 of the Securities Law.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on public companies that commit one of the following acts of violation:

a/ Failing to submit registration dossiers to the State Securities Commission according to regulations within one year after becoming public companies under the provisions of Point c, Clause 1, Article 25 of the Securities Law;

b/ Failing to disclose information under the provisions of Article 101 of the Securities Law;

c/ Violating the accounting regulations applicable to public companies or failing to audit annual financial statements or failing to apply the corporate governance regulations under the Enterprise Law for more than one year after becoming public companies;

d/ Registering or depositing securities at variance with regulations on securities registration and depository at the State Securities Commission, thus triggering complaints, petitions or disputes over securities ownership and affecting benefits of their shareholders.

4. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 1, 2 and 3 of this Article.

Article 11.- Sanctions against acts of violation of regulations on major shareholders of public companies that have their stocks listed at the Stock Exchange or the Securities Trading Center

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on organizations or individuals that have become major shareholders of a public company with stocks listed at the Stock Exchange or the Securities Trading Center and commit one of the following acts of violation:

a/ Failing to report, within seven working days, on major shareholders' ownership to the public company, the State Securities Commission and the Stock Exchange or the Securities Trading Center where stocks of that public company are listed, for organizations, individuals and groups of affiliated persons that have become major shareholders of the public company with stocks listed at the Stock Exchange or the Securities Trading Center;

b/ Failing to make reports on major shareholders' ownership with sufficient or accurate information specified in Clause 2, Article 29 of the Securities Law;

c/ Failing to submit, within seven working days, a revised report on a change in volume of owned stocks in excess of one percent (1%) of total outstanding securities of the same type to the public company, the State Securities Commission and the Stock Exchange or the Securities Trading Center where stocks are listed, for organizations, individuals and groups of affiliated persons being major shareholders of the public company with stocks listed at the Stock Exchange or the Securities Trading Center;

d/ Trading in stocks of the very listing company within seven working days before transactions are conducted or three working days after transactions are completed without reporting such to the Stock Exchange or the Securities Trading Center, for members of the Board of Directors, the Directorate, the Chief Accountant, the Controllers of the public company and affiliated persons.

2. Application of remedies:

a/ Forced compliance with legal provisions, for the violations specified in Clause 1 of this Article.

b/ Members of the Board of Directors, Director or General Director, Deputy Directors or Deputy General Directors, persons in charge of finance or accounting and other managerial staffs in the management apparatus of public companies who earn profits from the arbitrage of securities of those companies shall remit all profit amounts to the companies within six months after conducting the arbitrage.

Article 12.- Sanctions against acts of violation of public companies with stocks listed at the Stock Exchange or the Securities Trading Center that redeem their own stocks

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on public companies with stocks listed at the Stock Exchange or the Securities Trading Center that commit one of the following acts of violation:

a/ Failing to disclose information on redemption of their own stocks at least seven working days before conducting the redemption under the provisions of Clause 2, Article 30 of the Securities Law;

b/ Failing to disclose sufficient information on the purpose of the redemption, amount of securities to be redeemed, capital source for redemption, and redemption time according to regulations or as registered, and failing to conduct the redemption upon expiration of the redemption time limit though having disclosed information on the redemption;

c/ Selling the redeemed securities within six months after the date of redemption, unless they are so permitted according to the Finance Ministry's regulations.

2. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clause 1 of this Article.

Section 3. VIOLATIONS OF REGULATIONS ON SECURITIES LISTING

Article 13.- Sanctions against acts of violation of regulations on listing of securities at the Stock Exchange or the Securities Trading Center

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on listing organizations, directors or general directors, deputy directors or deputy general directors, chief accountants and affiliated persons of listing organizations, listing consultancy organizations, accredited audit organizations, persons signing audit reports, organizations or individuals certifying listing dossiers that commit one of the following acts of violation:

a/ Inserting untruthful or misleading information in their dossiers for listing at the Stock Exchange or the Securities Trading Center or failing to insert in these dossiers sufficient information as specified;

b/ Additionally issuing stocks without completing procedures for registering additional listing or conducting a split or reverse split of stocks without reporting such to the Stock Exchange or the Securities Trading Center where those stocks are listed, for issuing organizations;

c/ Failing to fully comply with regulations on the duration, contents and media of disclosure of listing information, for issuing organizations.

2. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on listing organizations, directors or general directors, deputy directors or deputy general directors, chief accountants and affiliated persons of listing organizations, listing consultancy organizations, accredited audit organizations, persons signing audit reports, organizations or individuals certifying listing dossiers that contain forgeries that cause serious misleading.

3. Remedies for consequences:

Cancellation of listings, for the violations specified in Clause 2 of this Article.

4. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 1 and 2 of this Article.

Section 4. VIOLATIONS OF REGULATIONS ON ORGANIZATION OF SECURITIES TRADING MARKET

Article 14.- Sanctions against acts of violation of regulations on organization of securities trading market

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on organizations or individuals that organize a securities trading market in contravention of the provisions of Clause 3, Article 33 of the Securities Law without earning illegal profits.

2. A fine of between one to five times the illegally earned amount, for organizations or individuals that organize a securities trading market in contravention of the provisions of Clause 3, Article 33 of the Securities Law and earn illegal profits.

3. Additional sanctioning forms:

a/ Forced termination of the illegal organization of a trading market;

b/ Confiscation of all illegal profit amounts earned by organizations or individuals from their acts of violation specified in Clause 2 of this Article.

4. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 1 and 2 of this Article.

Article 15.- Sanctions against acts of violation of regulations on management of listings by the Stock Exchange or the Securities Trading Center

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on the Stock Exchange or the Securities Trading Center that commits one of the following acts of violation:

a/ Accepting or rejecting listing dossiers in contravention of regulations on conditions on capital, business performance, financial capacity and number of shareholders or securities owners;

b/ Failing to detect listing organizations that fail to maintain all listing conditions as specified; failing to give warnings or disclose information according to regulations, thus affecting market prices of securities.

2. Application of remedies for consequences:

Forced compliance with the provisions of Clauses 4 and 6, Article 37, and Clause 1, Article 40 of the Securities Law.

Article 16.- Sanctions against acts of violation of regulations on management of members of the Stock Exchange or the Securities Trading Center

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on the Stock Exchange or the Securities Trading Center that commits one of the following acts of violation:

a/ Accepting or revoking the member status of securities companies in contravention of regulations on conditions on capital, material and technical foundations and number of practicing staffs specified in the Membership Regulation;

b/ Failing to detect trading members that fail to maintain all conditions required for members or fail to fully comply with regulations on obligations of members under the provisions of Clauses 2 and 4, Article 39 of the Securities Law.

2. Application of remedies for consequences:

Forced compliance with the provisions of Clause 5, Article 37 and Clauses 2 and 4, Article 4, Article 39 of the Securities Law.

Article 17.- Sanctions against acts of violation of regulations on trading, supervision and information disclosure committed by the Stock Exchange or the Securities Trading Center

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on the Stock Exchange or the Securities Trading Center that commits one of the following acts of violation:

a/ Organizing the trading of new types of securities, changing existing trading methods or applying new ones, putting into operation a new trading system without approval of the State Securities Commission;

b/ Failing to promptly detect acts of violation of the trading regulation or failing to strictly comply with the process of supervising trading activities according to regulations, thus letting violations occur or severely affecting the fairness, publicity and transparency of the market;

c/ Failing to temporarily cease, stop or terminate securities trading according to the trading regulation of the Stock Exchange or the Securities Trading Center in case of necessity to protect investors, or failing to promptly give signs of warning or disclose information on the market on fluctuations that severely impact the securities market.

2. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clause 1 of this Article.

Article 18.- Sanctions against acts of violation of regulations on organization of securities trading at securities companies

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on securities companies organizing securities trading at their offices that commit one of the following acts of violation:

a/ Failing to disclose at their head offices, branches and order-receiving agents information on methods of trading, order placement, payment of deposits for trading, time of payment, trading fees and services related to the trading of securities listed at the Securities Trading Center; or lists of practicing staffs licensed to conduct trading of securities listed at the Securities Trading Center who are trading members of the Securities Trading Center;

b/ Failing to fully perform the obligation to report and disclose information on trading of securities listed at the Securities Trading Center according to regulations.

2. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on securities companies being trading members of the Securities Trading Center that organize the trading of securities listed at the Securities Trading Center in contravention of the securities trading regulation of the Securities Trading Center under the provisions of Point b, Clause 2, Article 41 of the Securities Law.

3. Additional sanctioning forms:

Confiscation of all illegally earned amounts and forced termination of activities of organizing securities trading at securities companies.

4. Application of remedies for consequences:

Forced compliance with the securities trading regulation of the Securities Trading Center, for the violations specified in Clauses 1 and 2 of this Article.

Section 5. VIOLATIONS OF REGULATIONS ON SECURITIES BUSINESS ACTIVITIES AND SECURITIES PRACTICE CERTIFICATES

Article 19.- Sanctions against acts of violation of regulations on securities business licenses and certificates of registration of operation of representative offices

1. A caution shall be imposed on securities companies, fund management companies, securities investment companies; Vietnam-based branches of foreign securities companies or fund management companies that commit one of the following acts of violation:

a/ Using names of companies or their branches at variance with the licenses;

b/ Failing to notify the relocation of their offices.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on securities companies, fund management companies, securities investment companies; Vietnam-based branches of foreign securities companies or fund management companies that commit one of the following acts of violation:

a/ Commencing their operation without having fully satisfied the conditions specified by law;

b/ Operating in violation of their charters or failing to report on amendments or supplements to their charters.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on securities companies, fund management companies, securities investment companies; Vietnam-based branches of foreign securities companies or fund management companies that commit one of the following acts of violation:

a/ Conducting securities business or providing securities services without licenses;

b/ Lending, leasing or transferring their licenses;

c/ Conducting securities business or provide securities services in domains not stated in their licenses or with invalid licenses;

d/ Erasing or modifying licenses;

e/ Effecting changes related to securities and securities market without approval of the State Securities Commission.

4. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on securities companies or securities investment fund management companies that undergo division, separation, merger, consolidation or transformation without approval of the State Securities Commission.

5. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on Vietnam-based representative offices of foreign securities companies or securities investment fund management companies that directly conduct securities business activities in contravention of legal provisions.

6. Additional sanctioning forms:

a/ Confiscation of all illegal amounts earned from acts of violation specified at Points a, b and c, Clause 3, and Clause 5 of this Article;

b/ Deprivation of the right to use establishment and operation licenses of securities companies, fund management companies, securities investment companies, Vietnam-based branches of foreign securities companies or fund management companies for forty five days, for the violations specified at Point b, Clause 2; Points b, c and d, Clause 3, and Clause 4 of this Article;

c/ Revocation of establishment and operation licenses of securities companies, fund management companies, securities investment companies, Vietnam-based branches of foreign securities companies or fund management companies that still fail to remedy their violations upon the expiration of the duration of deprivation of the right to use those licenses specified at Point b of this Clause;

d/ Revocation of certificates of registration of operation of Vietnam-based representative offices of foreign securities companies or fund management companies, for the violations specified in Clause 5 of this Article;

7. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 2, 3, 4 and 5 of this Article.

Article 20.- Sanctions against acts of violation of regulations on business operation of securities companies

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on securities companies that commit one of the following acts of violation:

a/ Failing to organize or set up a system of internal control, risk management and supervision and prevention of benefit conflicts within the companies and in transactions with affiliated persons according to legal provisions;

b/ Failing to organize the separate management of securities of each investor or separate money and securities of investors from their own money and securities according to regulations;

c/ Failing to enter into written contracts with customers when providing services to the latter; failing to supply sufficient and truthful information to customers;

d/ Failing to adhere to the prescribed principle of prioritizing orders of their customers over their dealing orders; acting against orders of investors;

e/ Failing to organize the inquiry into and collection of sufficient information on the financial situation, investment objectives, risk assumption capacity of customers; failing to organize periodical assessment and classification of customers based on their risk assumption capacity; giving to their customers investment recommendations or advice incompatible with criteria for assessment and classification of customers based on their risk assumption capacity;

f/ Failing to keep confidential customers' information according to legal provisions.

2. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on securities companies that commit one of the following acts of violation:

a/ Failing to maintain the liquidity capital as prescribed;

b/ Investing or contributing capital in excess of the level set by law;

c/ Failing to buy professional liability insurance for their securities business operation; failing to maintain an adequate investor protection fund to pay compensations for investors' damage caused by technical problems and errors made by their staffs;

d/ Failing to keep all trading documents; failing to keep detailed and accurate records of all transactions of customers and their own transactions according to regulations.

3. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on securities companies that commit one of the following acts of violation:

a/ Selling or letting their customers sell securities when having no securities and not yet permitted by law;

b/ Lending securities to their customers for sale in contravention of law;

c/ Providing loans to their customers for purchase of securities, unless otherwise specified by the Finance Ministry.

4. Additional sanctioning forms:

a/ Deprivation of the right to use the establishment and operation licenses of securities companies for thirty days, for the violations specified in Clause 2 of this Article;

b/ Deprivation of the right to use the establishment and operation licenses of securities companies for forty five days, for the violations specified in Clause 3 of this Article;

c/ Confiscation of illegal amounts earned from acts of violation specified in Clause 3 of this Article.

5. Application of remedies for consequences:

Forced compliance with regulations on securities business, for the acts of violation specified in Clauses 1, 2 and 3 of this Article.

Article 21.- Sanctions against acts of violation of regulations on business operation of fund management companies

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on fund management companies that commit one of the following acts of violation:

a/ Failing to organize or set up a system of internal control, risk management and supervision and prevention of benefit conflicts within the companies and in transactions with affiliated persons according to legal provisions;

b/ Failing to organize the separate management of securities of each fund;

c/ Failing to enter into written contracts with customers that entrust them to make investment;

d/ Failing to supply sufficient and truthful information to their customers while providing services according to regulations;

e/ Failing to organize the collection of sufficient information on the financial situation of investment partners; making investment against the decided investment objectives; providing the investment entrustment consultancy service in contravention of regulations on division of profits or other commitments.

2. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on fund management companies that commit one of the following acts of violation:

a/ Failing to comply with their charters; failing to observe regulations on protection of investors benefits;

b/ Failing to buy professional liability insurance for their fund management operation; failing to set aside provisions to offset risks or pay compensations for investors' damage caused by technical problems and errors made by their staff members;

c/ Failing to keep all transaction documents; failing to keep detailed and accurate records of all transactions of fund asset investment according to regulations.

3. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on fund management companies that commit one of the following acts of violation:

a/ Inaccurately determining net values of assets of securities management funds for stabilizing market prices of fund certificates;

b/ Using capital or assets of securities investment funds to provide loans or underwrite issuance;

c/ Using capital or assets of an investment fund to invest in or buy assets of another fund they manage;

d/ Using capital or assets of investment funds to make capital contributions, acquiring shares, borrowing or providing loans;

e/ Using capital or assets of investment funds to invest in certificates of those public funds or other investment funds;

f/ Using capital and assets of investment funds to invest in an issuing organization's securities valued at more than fifteen percent of the total value of outstanding securities of that issuing organization;

g/ Using more than twenty percent of the total value of an investment fund's capital and assets in outstanding securities of a single issuing organization;

h/ Using more than ten percent of the total value of a closed-end fund's capital and assets in real estate; investing capital of an open-end fund in real estate;

i/ Using more than thirty percent of the total value of a public fund's capital and assets to invest in companies having ownership interrelations in a group;

j/ Using capital and assets of investment funds to provide loans or guarantee any loans;

k/ Borrowing loans to finance the operation of public funds in contravention of legal provisions.

4. Additional sanctioning forms:

a/ Deprivation of the right to use establishment and operation licenses of fund management companies for thirty days, for the violations specified at Points a and b, Clause 2 of this Article;

b/ Deprivation of the right to use establishment and operation licenses of fund management companies for forty five days, for the violations specified in Clause 3 of this Article;

c/ Confiscation of illegal amounts earned from acts of violation specified in Clause 3 of this Article.

5. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 1, 2 and 3 of this Article.

Article 22.- Sanctions against acts of violation of regulations on establishment, offering of certificates of public funds or stocks of securities investment companies

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on fund management companies, securities investment companies, issuance underwriting organizations, supervisory banks and affiliated individuals that commit one of the following acts of violation:

a/ Inserting in dossiers of registration for establishment or public offering of certificates of public funds or stocks of securities investment companies sent to the State Securities Commission untruthful or misleading information or insufficient material information, thus affecting investors' decisions;

b/ Using information outside prospectuses to conduct market surveys before being permitted to conduct public offering of public fund certificates or securities investment company stocks;

c/ Distributing public fund certificates or securities investment company stocks to the public before announcing the issuance thereof;

d/ Notifying the offering of public fund certificates or securities investment company stocks by the mass media other than those required or with improper contents, date and duration;

e/ Issuance underwriting organizations provide underwriting for a total value of public fund certificates or securities investment company stocks in excess of the specified level.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on fund management companies, securities investment companies, issuance consultancy organizations and report signers involved in the compilation of establishment dossiers of securities investment funds or public securities investment companies that include the capital contribution proportions of fund management companies and their staff members in the companies' charter capital in order to satisfy the specified condition of the minimum charter capital.

3. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on fund management companies, securities investment companies, issuance consultancy organizations and report signers involved in the compilation of dossiers for establishment of securities investment funds or public securities investment companies and for offering of public fund certificates or securities investment company stocks that make forgeries in these dossiers.

4. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on fund management companies, public securities investment companies, issuance underwriting organizations that conduct public offering of securities investment funds or public securities investment companies without approval of the State Securities Commission.

5. Additional sanctioning forms:

a/ Suspension of the public offering of public fund certificates or securities investment company stocks for forty five days, for the violations specified in Clause 3 of this Article;

b/ Cancellation of the public offering of public fund certificates or securities investment company stocks, in case of failure to remedy violations upon the expiration of the suspension duration specified at Point a of this Clause;

c/ Forced cancellation of the public offering of public fund certificates or securities investment company stocks, for the violations specified in Clause 4 of this Article;

d/ Confiscation of all illegal amounts earned by organizations or individuals from their acts of violation specified in Clauses 3 and 4 of this Article.

6. Application of remedies for consequences:

a/ Fund management companies shall recover certificates, securities investment companies shall recover stocks already offered and refund deposits or certificate purchase money amounts to investors, if these investors request cancellation of their subscriptions, within fifteen days after the public offering of public fund certificates or securities investment companies is suspended under the provisions of Point a, Clause 5 of this Article;

b/ Fund management companies shall recover fund certificates, securities investment companies shall recover stocks already offered and refund deposits or certificate or stock purchase money amounts to investors within thirty days after they are compelled to cancel the public offering of public fund certificates or securities investment company stocks under the provisions of Points b and c, Clause 5 of this Article.

Article 23.- Sanctions against acts of violation of regulations on setting up of member funds

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on fund management companies and affiliated individuals that commit one of the following acts of violation:

a/ Inserting in dossiers for setting up member funds sent to the State Securities Commission untruthful information or insufficient necessary information, thus affecting benefits of capital-contributing members;

b/ Making contracts for management and supervision of member funds' assets with supervisory banks at variance of regulations or in contravention of the charters of funds, thus causing damage to fund contributors;

c/ Failing to report or to promptly report on risks or abnormal fund asset losses that severely affect benefits of fund contributors.

2. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clause 1 of this Article.

Article 24.- Sanctions against acts of violation of regulations on securities practice certificates

1. A caution shall be imposed on securities companies, fund management companies or securities investment companies that commit one of the following acts of violation:

a/ Failing to promptly report any change of their practicing staffs;

b/ Failing to send their staffs to attend courses of training in law, trading systems or new types of securities according to regulations.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on securities companies, fund management companies or securities investment companies that commit one of the following acts of violation:

a/ Employing persons without securities practice certificates to perform professional operations that require, under law, securities practice certificates;

b/ Failing to change or transfer to other jobs persons whose securities practice certificates have been revoked under competent authorities' decisions.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on a securities practitioner of a securities company or fund management company who commits one of the following acts of violation:

a/ Working concurrently for another organization having an ownership relation with the securities company or fund management company where he/she is working;

b/ Working concurrently for another securities company or fund management company;

c/ Acting concurrently as director or general director of an organization conducting public offering of securities or a listing organization;

d/ Opening a securities trading account at a securities company while working for another one;

e/ Investing in another securities company, for practice certificate holders who are members of the Board of Directors, the Directorate or the Control Board of the securities company.

4. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on securities practitioners who commit one of the following acts of violation:

a/ Abusing their positions or assigned tasks to lend money or securities on accounts of customers, or using securities of customers as collaterals, or using money or securities on accounts of customers without consent of these customers;

b/ Directly or indirectly committing acts of deceiving, defrauding or fabricating untruthful information or omitting necessary information, thus causing serious misunderstanding and affecting the public offering of securities, securities listing, trading and investment, provision of securities and securities market services;

c/ Lending or leasing securities practice certificates;

d/ Erasing or modifying securities practice certificates.

5. Additional sanctioning forms:

a/ Deprivation of the right to use securities practice certificates for an unspecified duration, for the violations specified in Clauses 3 and 4 of this Article;

b/ Confiscation of all illegal amounts earned by securities practitioners from acts of violation specified in Clause 4 of this Article.

6. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 1, 2, 3 and 4 of this Article.

Section 6. VIOLATIONS OF REGULATIONS ON SECURITIES TRADING

Article 25.- Sanctions against acts of violation of regulations on ban on participation in stock trading

1. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on individuals while a fine of between VND 50,000,000 and 70,000,000 shall be imposed on organizations banned by law from participating in stock trading that directly or indirectly hold or buy or sell stocks under other names or in the capacity of other persons.

2. Additional sanctioning forms:

Confiscation of all illegal profit amounts and stocks used for committing violations.

3. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clause 2, Article 126 of the Securities Law.

Article 26.- Sanctions against acts of fraud or deception in securities trading

1. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on individual securities investors while a fine of between VND 50,000,000 and 70,000,000 shall be imposed on institutional securities investors that commit one of the following acts of violation:

a/ Directly or indirectly taking part in activities of defrauding, deceiving, fabricating untruthful information or omitting necessary information, thus causing serious misunderstanding and affecting activities of securities listing, listing, trading and investment and providing securities services;

b/ Directly taking part in the disclosure of misleading information to instigate or provoke the securities purchase or sale, or failing to promptly and sufficiently disclose information on events that affect market prices of securities.

2. Additional sanctioning forms:

Confiscation of all illegal amounts earned by securities investment organizations and individuals from their acts of violation specified in Clause 1 of this Article.

3. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clause 1 of this Article.

Article 27.- Sanctions against acts of violation of regulations on insider transactions in securities trading

1. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on individual securities investors while a fine of between VND 50,000,000 and 70,000,000 shall be imposed on institutional securities investors that commit one of the following acts of violation:

a/ Using insider information for buying or selling securities of public companies or public funds for themselves or for a third party;

b/ Disclosing or supplying insider information or providing consultancy to a third party to buy or sell securities on the basis of insider information.

2. Additional sanctioning forms:

Confiscation of all amounts earned by institutional or individual securities investors from their acts of violation specified in Clause 1 of this Article.

3. Application of remedies for consequences:

Forced compliance with regulations on insider transactions, for the violations specified in Clause 1 of this Article.

Article 28.- Sanctions against acts of manipulating the securities market

1. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on individual securities investors while a fine of between 50,000,000 and 70,000,000 shall be imposed on institutional securities investors that commit one of the following acts of violation:

a/ Acting in collusion with one another in securities trading in order to create sham supply and demand;

b/ Conducting securities trading through conniving with or enticing others to buy and sell securities back and forth in order to manipulate their prices;

c/ Combining or using other trading tricks to manipulate securities prices.

2. Additional sanctioning forms:

To confiscate all illegal amounts earned by individual or institutional securities investors from their acts of violation specified in Clause 1 of this Article.

3. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clause 1 of this Article.

Article 29.- Sanctions against acts of violation of regulations on public bids

1. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on organizations and individuals that make bids for voting stocks, thereby acquiring the ownership of twenty five percent or more of outstanding stocks of a public company or make bids without sending public bid registrations to the State Securities Commission according to regulations, or make public bids without the State Securities Commission's written approval.

2. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on organizations and individuals that make bids for voting stocks, thereby acquiring the ownership of twenty five percent or more of outstanding of a public company, or make bids to subjects that are forced to sell their own stocks, and commit one of the following acts of violation:

a/ Directly or indirectly buying or pledging to buy bid stock amounts outside a stock bidding;

b/ Selling or pledging to sell stock amounts they are bidding for;

c/ Unfairly treating owners of the same type of stocks put up for bids;

d/ Supplying information only to certain shareholders or supplying information to different shareholders at different extents and different points of time;

e/ Making public bids at a time in contravention of law;

f/ Making bids to subjects that are forced to sell their own stocks;

g/ Failing to publicly apply bid conditions to all shareholders of public companies;

h/ Refusing to buy stocks from any shareholders under conditions of public bids.

3. Additional sanctioning forms:

a/ Suspension of public bidding for forty five days, for the violations specified in Clauses 1 and 2 of this Article;

b/ Cancellation of public bidding in case of failure to remedy violations upon the expiration of the suspension duration specified at Point a of this Clause.

4. Remedies for consequences:

Forced compliance with regulations on public bids, for the violations specified in Clauses 1 and 2 of this Article.

Section 7. VIOLATIONS OF REGULATIONS ON SECURITIES REGISTRATION, DEPOSITORY, CLEARING AND PAYMENT, AND ON SUPERVISORY BANKS

Article 30.- Sanctions against acts of violation of regulations on securities registration, depository, clearing and payment

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on the Securities Depositary Center or securities depository members that commit one of the following acts of violation:

a/ Organizing the securities registration, depository, clearing and payment while failing to satisfy the specified conditions on material and technical foundation in service of securities registration, depository, clearing and payment activities;

b/ Failing to completely develop operational and risk management processes for each professional operation according to regulations;

c/ Failing to devise measures to protect databases and keep original documents on securities registration, depository, clearing and payment according to regulations.

2. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on the Securities Depositary Center, securities depository members and staffs of these organizations that commit one of the following acts of violation:

a/ Violating regulations on securities preservation and keeping; regulations on securities registration, depository, clearing and payment, thus causing damage to customers;

b/ Violating regulations on keeping confidential depository accounts of customers;

c/ Failing to supply in a sufficient, timely and accurate manner lists of owners, shareholders and relevant documents upon request of public companies.

3. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on the Securities Depositary Center and securities depository members that violate regulations on the time limit for securities payment or ownership transfer, or modify, lose or forge documents in securities payment or ownership transfer, thus causing material damage to customers.

4. Additional sanctioning forms:

a/ Deprivation of the right to use certificates of registration of depository operation for ninety days at most, for depository members violating the provisions of Point a, Clause 2 and Clause 3 of this Article;

b/ Confiscation of all illegal amounts earned by organizations engaged in securities registration, depository, clearing and payment and their staffs from their acts of violation specified in Clauses 2 and 3 of this Article.

5. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 2 and 3 of this Article.

Article 31.- Sanctions against acts of violation of regulations on responsibilities of supervisory banks

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on supervisory banks that perform the functions of a supervisory bank while failing to ensure material and technical foundations, or to develop operational or risk management processes in order to ensure the fulfillment of obligations of a depositary bank as specified by law.

2. A fine of between VND 20,000,000 and 50,000,000 shall be imposed on supervisory banks that commit one of the following acts of violation:

a/ Failing to conduct timely and accurate collection, payment, settlement and transfer of money and securities according to regulations;

b/ Certifying inaccurate or erroneous statements of assets of public funds, assets of securities investment companies made by fund management companies or securities investment companies.

3. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on supervisory banks that commit one of the following acts of violation:

a/ Preserving assets of securities investment funds or assets of securities investment companies in contravention of the charters of those funds or companies made according to regulations.

b/ Failing to preserve assets of an investment fund in separation from those of another investment fund according to regulations;

c/ Having ownership relations with, being borrowers or lenders of fund management companies or securities investment companies or vice versa, for supervisory banks, members of their boards of directors, their executive officers and staffs;

d/ Buying or selling assets of public funds or securities investment companies, for supervisory banks, members of their boards of directors, their executive officers and staffs that directly perform the supervising tasks.

4. Additional sanctioning forms:

a/ Deprivation of the right to use certificates of registration of securities depository operation for thirty days, for the violations specified in Clause 3 of this Article;

b/ Revocation of certificates of registration of securities depository operation, for case of failure to remedy violations upon the expiration of the use right deprivation duration specified at Point a of this Clause.

5. Application of remedies for consequences:

Forced compliance with legal provisions, for the violations specified in Clauses 1, 2 and 3 of this Article.

Section 8. VIOLATIONS OF REGULATIONS ON INFORMATION DISCLOSURE

Article 32.- Sanctions against acts of violation of regulations on information disclosure

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on issuing organizations, public companies, listing organizations, securities companies, fund management companies, securities investment companies, the Stock Exchange and the Securities Trading Center that commit one of the following acts of violation:

a/ Disclosing information without reporting to the State Securities Commission on the disclosed information contents according to legal provisions;

b/ Disclosing information through persons who are not duly authorized as required by law.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on issuing organizations, public companies, listing organizations, securities companies, fund management companies, securities investment companies, the Stock Exchange and the Securities Trading Center that commit one of the following acts of violation:

a/ Organizing information disclosure through communication media other than those specified by law;

b/ Failing to disclose sufficient and timely information and within the time limit specified by law.

3. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on issuing organizations, public companies, listing organizations, securities companies, fund management companies, securities investment companies, the Stock Exchange and the Securities Trading Center that commit one of the following acts of violation:

a/ Disclosing untruthful information, thus causing severe market price fluctuations;

b/ Revealing secret documents and data pertaining to information banned from disclosure or not yet disclosed;

c/ Intentionally delaying disclosure of abnormal information or information upon the State Securities Commission's request.

4. Application of remedies for consequences:

Forced compliance with legal provisions on information disclosure, for the violations specified in Clauses 1, 2 and 3 of this Article.

Section 9. VIOLATIONS OF REGULATIONS ON REPORTING

Article 33.- Sanctions against acts of violation of regulations on reporting

1. A caution or a fine of between VND 5,000,000 and 10,000,000 shall be imposed on the Stock Exchange, the Securities Trading Center, the Securities Depositary Center, public companies, listing organizations, securities companies, fund management companies, securities investment companies and supervisory banks that commit one of the following acts of violation:

a/ Failing to report on sufficient information specified by law;

b/ Failing to report within the time limit specified by law;

c/ Making reports in an improper form.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on the Stock Exchange, the Securities Trading Center, the Securities Depositary Center, public companies, listing organizations, securities companies, fund management companies, securities investment companies and supervisory banks that commit one of the following acts of violation:

a/ Ceasing their operation without reporting such to the State Securities Commission or without the State Securities Commission's approval of the reported operation cessation;

b/ Failing to report or to promptly report on the occurrence of abnormal events that may severely affect their financial capacity and securities trading or service provision.

3. Application of remedies for consequences:

Forced compliance with legal provisions on reporting, for the violations specified in Clauses 1 and 2 of this Article.

Section 10. VIOLATIONS OF REGULATIONS ON OBSTRUCTION OF INSPECTION

Article 34.- Sanctions against acts of obstructing inspection

1. A caution shall be imposed on issuing organizations, listing organizations, securities companies, fund management companies, securities investment companies, supervisory banks, the Stock Exchange, the Securities Trading Center, the Securities Depositary Center and other organizations and individuals involved in securities and securities market activities that commit acts of delaying, shirking or failing to supply sufficient and timely information, documents and electronic data upon request of inspection teams and inspectors.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on issuing organizations, listing organizations, securities companies, fund management companies, securities investment companies, supervisory banks, the Stock Exchange, the Securities Trading Center, the Securities Depositary Center and other organizations and individuals involved in securities and securities market activities that obstruct inspecting activities, use force against or intimidate members of inspection teams who are on duty.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on issuing organizations, listing organizations, securities companies, fund management companies, securities investment companies, supervisory banks, the Stock Exchange, the Securities Trading Center, the Securities Depositary Center and other organizations and individuals involved in securities and securities market activities that commit one of the following acts of violation:

a/ Hiding or modifying vouchers, documents and books or alter material evidence while under inspection;

b/ Removing or otherwise changing at their own will the sealing conditions of money, securities, books, dossiers and accounting documents or other sealed material evidence and means.

Chapter III

COMPETENCE AND PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS

Article 35.- Competence to sanction administrative violations

1. The Chief Inspector of the State Securities Commission may:

a/ Impose cautions;

b/ Impose fines of up to VND 70,000,000.

2. The Chairman of the State Securities Commission may:

a/ Impose cautions;

b/ Impose fines of up to VND 70,000,000;

c/ Sanction acts of violation specified in Clause 3 and Clause 4, Article 9 and Clause 2, Article 14 of this Decree according to current legal provisions;

d/ Apply the additional sanctioning forms and remedies for consequences specified in Clauses 2 and 3, Article 7 of this Decree.

Article 36.- Authorized sanctioning of administrative violations

When persons competent to sanction administrative violations defined in Article 35 of this Decree are absent, they may authorize in writing their deputies to sanction administrative violations. The authorization shall be made in accordance with Article 11 of the Ordinance on Handling of Administrative Violations and Article 14 of the Government's Decree No. 134/2003/ND-CP of November 14, 2003, detailing the implementation of a number of articles of the Ordinance on Handling of Administrative Violations.

Article 37.- Termination of acts of administrative violation

When detecting acts of administrative violation, persons competent to sanction administrative violations shall order in writing the immediate termination of those acts.

Article 38.- Making of written records of administrative violations

1. After issuing orders on termination of acts of administrative violation according to the procedures specified in Article 53 of the Ordinance on Handling of Administrative Violations, competent persons shall make written records thereof and mete out the sanctions. For violations beyond their competence, they shall transfer their files to competent authorities for decision on sanctioning under the provisions of the Government's Decree No. 81/2005/ND-CP of June 22, 2005, on the organization and operation of the Financial Inspectorate.

2. Written records must be made for all administrative violations in the domain of securities and securities market, except for cases of violation where violators are cautioned or for violations previously examined as crimes but then determined as administrative violations and subject to administrative handling.

3. A written record on handling of an administrative violation must be made in at least two copies according to a set form. Written records must be signed by record makers, violators or representatives of violating organizations. Witnesses, victims or representatives of victim organizations (if any) shall also sign written records. If a written record consists of many pages, persons defined in this Clause shall jointly sign each page. If violators, representatives of violating organizations, witnesses, victims or representatives of victim organizations refuse to sign written records, record makers shall clearly state reasons for such refusal in the records.

4. After being made, a copy of a written record shall be handed over to the violating organization or individual; if the violation case falls beyond the administrative violation-sanctioning competence of the record maker, he/she shall send the written record of the administrative violation (the original) and all documents and records that have been detected in relation to the act of violation to an authority with appropriate sanctioning competence within three working days after making this written record.

Article 39.- Sanctioning decisions

1. A sanctioning decision shall be made in at least five copies according to a set form (for the sanctioning form of caution) and at least six copies according to a set form (for the sanctioning form of fine).

2. The time limit for issuing an administrative violation sanctioning decision is ten working days after a written record of administrative violation is made. For cases involving many complicated circumstances, the time limit is thirty days. When more time is need for verifying and collecting evidence, competent persons shall report in writing to their immediate superiors for extension of that time limit. The extension shall be decided in writing and must not exceed thirty days. Past that time limit, persons with sanctioning competence may not issue sanctioning decisions. When no sanctioning decision is issued, the remedies for consequences specified in Clause 3, Article 7 of this Decree may still be applied.

3. Competent persons shall issue only one sanctioning decision against an individual or organization committing many acts of administrative violation. For a case where many individuals or organizations commit the same act of violation but are not interrelated in the course of committing such act, each individual or organization shall be sanctioned under a separate sanctioning decision. Depending on the nature and severity of violation of each individual or organization, persons with sanctioning competence shall decide on appropriate specific sanctioning levels.

If the sanctioning form or level in a case of violation falls beyond the competence of the sanctioning person, he/she shall transfer the case file to an authority with appropriate sanctioning competence.

4. When an administrative violation falls under the sanctioning competence of many persons, the sanctioning shall be conducted by the person that first accepts the case.

5. A sanctioning decision takes effect after its signing, unless another effective date is specified therein.

6. The time limit for sending sanctioning decisions to sanctioned organizations or individuals and fine-collecting agencies is three working days after these sanctioning decisions are issued.

Article 40.- Procedures for imposing fines

1. Fines shall be imposed according to the procedures specified in Articles 38 and 39 of this Decree. Within ten working days after being handed sanctioning decisions, sanctioned organizations and individuals shall remit fine amounts stated in sanctioning decisions into the State Treasury and receive fine receipts.

2. The specific fine level applicable to an act of administrative violation is the medium level of the fine bracket set for such act. If extenuating circumstances are involved, the fine level may be lower but must not be lower than the lowest level of the fine bracket. If aggravating circumstances are involved, the fine level may be higher but must not exceed the highest level of the fine bracket.

Article 41.- Procedures for depriving of the right to use licenses or securities practice certificates

1. The Chairman of the State Securities Commission may issued decisions to deprive of the right to use licenses or securities practice certificates under the provisions of Point c, Clause 2, Article 7 of this Article.

2. In case of deprivation of a license or securities practice certificate, a sanctioning decision must state the title, type and number of the license or certificate; and the duration of deprivation of the right to use license or certificate. If only a decision on suspension of a specific professional operation is issued, the person with sanctioning competence shall clearly state in the sanctioning decision the professional operation to be suspended and the duration of deprivation of the right to perform that operation.

3. When detecting that a license is granted ultra vires or contains unlawful contents, the person with sanctioning competence shall immediately revoke that license and concurrently notify such to the state agency with licensing competence.

Article 42.- Procedures for confiscating securities amounts used for committing administrative violations and amounts earned from commission of acts of violation

When applying the additional sanction of confiscating securities amounts used for committing administrative violations and amounts earned from commission of acts of violation, persons with sanctioning competence shall make written records on the confiscation according to the set form of written record on confiscation of material evidence and means used in administrative violations. Written records shall be signed by persons conducting the confiscation, sanctioned persons, representatives of sanctioned organizations and witnesses.

Article 43.- Procedures for suspending or cancelling public offering of securities

When applying the additional sanction of suspending for a specified duration or of cancelling public offering of securities, persons with sanctioning competence shall clearly state that sanction in sanctioning decisions.

Procedures for suspending and cancelling public offering of securities are as defined in Articles 22 and 23 of the Securities Law.

Article 44.- Forced compliance with decisions on sanctioning of administrative violations

1. Individuals and organizations sanctioned for administrative violations that fail to voluntarily comply with administrative violation sanctioning decisions shall be coerced to do so with the following measures:

a/ Withholding of part of their wages or incomes or deduction of their bank accounts;

b/ Distraint of assets of a value equal to fine amount for auction;

c/ Application of other coercive measures to confiscate material evidence and/or means used for committing administrative violations, or to compel restoration of the original state altered due to acts of administrative violation.

2. Persons competent to sanction administrative violations defined in Article 35 of this Article may issue coercive decisions and shall organize the coercive enforcement.

3. Individuals and organizations that receive coercive decisions shall strictly comply with those decisions.

4. State agencies, people's police force and People's Committees of all levels shall coordinate with one another in organizing the coercive enforcement upon request of persons competent to sanction administrative violations defined in Clause 2 of this Article.

5. Individuals and organizations subject to coerced compliance shall bear all expenses for application of coercive measures.

Chapter IV

SUPERVISION AND INSPECTION IN HANDLING OF ADMINISTRATIVE VIOLATIONS, SETTLEMENT OF COMPLAINTS AND DENUNCIATIONS AND HANDLING OF VIOLATIONS COMMITTED BY PERSONS COMPETENT TO SANCTION ADMINISTRATIVE VIOLATIONS IN THE DOMAIN OF SECURITIES AND SECURITIES MARKET

Article 45.- Supervision and inspection in sanctioning of administrative violations

The Finance Minister shall regularly supervise and inspect the sanctioning of administrative violations in the domain of securities and securities market under his/her management; promptly settle complaints and denunciations in the sanctioning of administrative violations about persons with sanctioning competence defined in Article 35 of this Decree; handle persons under his/her management making mistakes or committing violations in the sanctioning of administrative violations, and report on the situation of administrative violations in the domain under his/her charge upon the request of competent agencies.

Article 46.- Settlement of complaints, initiation of lawsuits against administrative violation sanctioning decisions and settlement of denunciations against illegal acts of persons competent to sanction administrative violations

1. Individuals and organizations sanctioned for administrative violations in the domain of securities and securities market may lodge with competent state agencies complaints about persons issuing administrative violation handling decisions. Competent state agencies shall settle those complaints under the provisions of the Law on Complaints and Denunciations.

The initiation of lawsuits against administrative violation sanctioning decisions at people's court of all levels shall be effected under the provisions of law on procedures for handling of administrative cases.

Pending the settlement of their complaints or lawsuits, individuals and organizations sanctioned for administrative violations shall still comply with sanctioning decisions. When decisions on settlement of complaints are issued by competent agencies or court judgments or rulings take effect, they shall abide by those decisions, court judgments or rulings.

2. The lodging and settlement of denunciations against illegal acts in the sanctioning of administrative violations in the domain of securities and securities market shall be conducted in accordance with the Law on Complaints and Denunciations and other legal provisions.

Chapter V

IMPLEMENTATION PROVISIONS

Article 47.- Effect of the Decree

This Decree takes effect 15 days after its publication in "CONG BAO" and replaces all previous stipulations on sanctioning of administrative violations in the domain of securities and securities market.

Article 48.- Responsibility to guide

The Finance Minister shall guide in detail the implementation of this Decree.

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and presidents of provincial/municipal People's Committees shall implement this Decree.